TORONTO, ONTARIO--(Marketwire - Nov. 13, 2012) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle") or (the "Company"), is pleased to announce that Rainbow Resources Inc. has completed the first two holes of a Phase 1 reverse circulation drill program at the Company's Jewel Ridge Property near Eureka, Nevada. This first phase of drilling is focused on the past-producing Hamburg Pit area. Each hole, drilled to depths of approximately 150 metres (500 feet), hit the contact zone between the Hamburg Dolomite and the Dunderberg Shale with intense silicification reported throughout each hole. Drilling is following up on some highly encouraging near-surface historical drill results in this area of Jewel Ridge including 2.1 g/t Au over 39.6 metres.
Jewel Ridge is located on the south end of Nevada's prolific Battle Mountain - Eureka Trend, along strike and contiguous to Barrick Gold's two-million ounce Archimedes / Ruby Hill mine to the north and the advanced-stage Lookout Mountain Project to the south. Jewel Ridge contains several historic small open-pit gold mines which align along a north-south trending stratigraphic contact of Lower Paleozoic sedimentary rocks, as well as several other gold mineralized zones with a variety of structural and lithological controls.
Significant results from recent work by Rainbow included chip samples across 15 metres from the south wall of the Hamburg pit (southern portion of Jewel Ridge) that assayed 0.98 g/t Au, 14.1 g/t Ag and 3.45 per cent zinc. A hematite float sample, believed to have originated from the Dunderberg mine area in the northwest section of the property, graded 3.6 g/t Au, 30.4 g/t Ag and 2.2 per cent lead.
The Jewel Ridge property consists of 96 unpatented lode mining claims and eleven patented claims covering approximately 1,510 acres. Rainbow can earn up to a 75-per-cent interest in Jewel Ridge as part of its option agreement with Greencastle, announced March 29, 2012.